Apparently, out of the UK, the LIBOR rating was subject to cooking the books, undermining trust in the system.

http://cnnradio.cnn.com/2012/07/09/libor-not-a-science-fiction-monster/?hpt=hp_t2

http://www.businessweek.com/news/2012-07-09/libor-criminal-probe-cftc-bank-exemptions-canada-compliance

Yup. Us Brits have been bombarded by this in the past week or so. Lead to Bob Diamond retiring, the head of one of the biggest banks, to retire, and for a parliamentary review to be set up.

Big stuff, and I'd imagine it spreads WW.

Likely more banks would be brought under the microscope of examination.

Isn't that the same thing?

That was my thought of what was going on, so I was likely agreeing with you.  I was in the middle of something else while posting here.  I was also going to get more article on it, but ran out of time.   

government is evil and we should put all our trust in the private market...

This is only the beginning. When/if the full truth of the scandal is revealed, it will truly be shocking (or at least should, I suspect many people's faith in the banking system is already pretty low)

It's been in the news here too...

Thing is, the feds likely knew this was going on, and just let it go on, since it went hand and hand with most governments policy at the time.

The Feds themselves were trying to artificially lower the LIBOR.

Or actually to put it more specifically.  The regulators, the US Fed and UK government DID know, and the UK government refused to do anything about it despite the US fed pointing out the problems and suggesting fixes.

http://www.reuters.com/article/2012/07/10/us-markets-credit-barclays-idUSBRE86907120120710

Then it got let go for a while because well... like I said, it benefited the goverments goals of an artificially low LIBOR.

All the regultions in the world don't help if your regulators won't regulate... and in reality they hurt, because it allows the regulators to pick and choose who gets to cheat.

I was tempted to drag in some Max Keiser stuff, but the response on here is something along the lines of Beavis and Butthead type response of "Lyndon LaRouche, hehe hehe".    Can I at least bring in some Mike Taibbi?

http://www.rollingstone.com/politics/blogs/taibblog/why-is-nobody-freaking-out-about-the-libor-banking-scandal-20120703

Pretty much the entire financial system is in debt hell, and can't afford rates to get higher, so there is a systemic turning of a blind eye towards everything, likely to the extent that inflation numbers are also falsified.

Hm, I'm not sure what you mean about Lyndon LaRouche.   I find Lyndon LaRouche generally creepy and largely without merit and most of his followers feel more like Super Church Evangelists then a follower of a political movement.

Outside that... yeah it's a big deal for sure.

Bob Diamond is essentially being used as a scapegoat for something the goverment was likely activly involved in.

I imagine not many people are freaking out about here though because so far... our government seems pretty in the clear.

The worst that can be said so far is that the Fed didn't blow the whistle on the UK when they kept rebuffing the Feds calls for better LIBOR changes.

What's interseting is wondering what kind of effect this had on the Global financial crisis to begin with... since the Fed noticed it due to Bear Stearns.

My guess is, things get cut off far from the top of the chain... maybe even stopping at Diamond and other bank heads.